World Wires

  • Logout
  • Member Center

U.S. imposes new sanctions on Iran, turning up the heat

 

McClatchy Newspapers

WASHINGTON — The Obama administration announced tough new targeted sanctions Monday against the Central Bank of Iran, ratcheting up economic pain on Tehran in a move intended to drive it into new international negotiations over its nuclear program, but one that could prove a trigger point for conflict.

The sanctions, part of a years-long effort to force Iran to comply with global nuclear-weapons rules, were issued in a White House executive order. They comply with amendments to a sweeping defense bill that Congress passed late last year.

The sanctions require any U.S. person or corporation to freeze property or interests that belong to the government of Iran, its Central Bank or any other Iranian financial institution. Most of these sanctions already had been in place on all major Iranian banks, but targeting Iran's Central Bank is unusual.

The action attempts to disrupt operations in which a third-country bank is acting on behalf of Iran's Central Bank or other Iranian banks. This is happening in Afghanistan and possibly other Iranian neighbors.

In a letter to lawmakers, President Barack Obama said additional sanctions were necessary "in light of the deceptive practices of the Central Bank of Iran and other Iranian banks to conceal transactions of sanctioned parties, the deficiencies in Iran's anti-money laundering regime and the weaknesses in its implementation, and the continuing and unacceptable risk posed to the international financial system "

To reinforce the measures, the Treasury Department announced that Daniel Glaser, the assistant secretary for terrorist financing, was being dispatched to Oman, Qatar and Russia this week for high-level meetings on Iran.

This happens amid mounting concerns that Israel soon might launch a pre-emptive attack on presumed Iranian nuclear weapons-development sites. That would inflame tensions across the Middle East, a region in turmoil over the past year that analysts view as a tinderbox.

Tehran has shown some interest in international talks, but it's also signaled that it considers new sanctions a provocation. It's threatened to disrupt oil shipments in the Persian Gulf by blocking the narrow Strait of Hormuz, through which some 20 percent of global oil trade passes. On Friday, Iran's supreme cleric, Ayatollah Ali Khamenei, issued thinly veiled threats of retaliation.

"Of course, the Americans and others should, and do, know that we have our own threats to confront the military threats and oil sanctions and when necessary, we will make use of them at the right time," Khamenei said.

Analysts fear that conflict in the Strait of Hormuz could send oil prices soaring and set back the U.S. economic recovery. Oil prices surpassed $100 a barrel late last year and remained in the $97 range Monday, in part because of concern over Iran.

"I think they are elevating oil prices. Based on what we've seen on the supply and demand side, oil prices should be $5 (a barrel) lower or more," said Phil Flynn, a veteran commodities trader for PFGBest in Chicago, adding that U.S. inventories are solid and demand weak. "Why is oil staying higher?"

The European Union agreed late last month that its members would block oil imports from Iran, the second largest oil exporter in OPEC, by July 1. Together the United States and the EU are choking the oil-dependent Iranian economy.

McClatchy Newspapers 2012
dealsaver
The Miami Herald: Subscribe now!

More from
World Wires

  • Egypt's revolutionaries wonder: Why did a Mubarak holdover like Shafik do so well?

    The battle scars of the revolution that led to the end of Hosni Mubarak's regime continue to define the Egyptian landscape.

  • Egyptians ask why a Mubarak holdover like Shafik did so well

    There had long been clues that a rift between revolutionaries and ordinary Egyptians had always existed and had been fermenting since Mubarak left office. State media, the main source of information for most Egyptians, routinely blamed the state’s growing instability on the revolutionaries. In a nation where many voters had never met a revolutionary, they trusted state media more.

  • Rebel groups merge in Mali, agree on Islamic state

    The two rebel groups that seized control of the northern half of Mali announced Saturday that they have agreed to fuse their movements and work together to create an independent Islamic state on the territory they occupy, a signatory to the agreement said.

Join the
Discussion

The Miami Herald is pleased to provide this opportunity to share information, experiences and observations about what's in the news. Some of the comments may be reprinted elsewhere in the site or in the newspaper. We encourage lively, open debate on the issues of the day, and ask that you refrain from profanity, hate speech, personal comments and remarks that are off point. Thank you for taking the time to offer your thoughts.

We have introduced a new commenting system called Disqus for our articles. This allows readers the option of signing in using their Facebook, Twitter, Disqus or existing MiamiHerald.com username and password.

Having problems? Read more about the commenting system on MiamiHerald.com.

Hide Comments

This affects comments on all stories.

Cancel OK
0 comments

  • Videos

  • Quick Job Search

Enter Keyword(s) Enter City Select a State Select a Category